RAC extends Assurant agreement by three years

The RAC and Assurant have announced a three-year agreement extension as they target franchised dealer sector.

The deal covers a range of RAC-branded warranty and other dealer insurance products, as well as the RAC Dealer Network and RAC Approved Dealers.

The two organisations have been working together since 2008 when the original arrangement was signed by The Warranty Group, acquired by Assurant in May 2018. The new deal will see a collaboration until at least 2024.

RAC’s chief executive, Dave Hobday, said: “Our agreement has been extended by an additional three years from the original 2021 expiry date, which is a sign of our confidence in Assurant, our acknowledgement of all that our teams have achieved working together, and our support of where they intend to take the brand in the next few years.”

Assurant’s president for automotive Europe, Rich Green, said: “Substantial effort has gone into ensuring that the proposition provided to dealers and customers is of a very high quality, reflecting the RAC brand.

"As an illustration, we have paid out over £9m in claims so far this year alone, which is a substantial figure.

“We have a greater presence in car supermarkets than any other warranty provider and are starting to grow our presence in the franchise dealer space where there is increasing recognition of how the RAC brand can be used alongside the manufacturer’s name.